Watch out for these red flags when picking a financial advisor

A financial advisor is supposed to help you invest your money wisely and set yourself up for the future. While they do make money for this service, your best interests are still supposed to be their top priority.

Unfortunately, you often get advisors that do not put you first. They think more about their own success or the firm’s success. This can cost you significantly, and you absolutely need to know what red flags to look for.

One issue is when the advisor only tells you about success and acts like there were no failed trades to even things out. No one is perfect. If they seem like they’re hiding something, you have to ask just how bad it is and what that means for your portfolio.

It may also be a red flag if they seem ultra-focused on one thing, especially if they act like they’re the only one who offers it. The goal could simply be to make it so that you have to stay with them, paying their fees for life.

“If an advisor talks about their exclusive investments or investment services, they are likely trying to lock you up and make it difficult/expensive to leave their firm,” said one expert. “I have seen countless clients that were sold annuities that locked them into a product for several years with onerous penalties to get out.”

You also need to be careful if the advisor starts the process by talking about what they can do for you. Instead, they should listen to you talk about what you want and what goals you have, and then they should address them.